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Drug developer CombinatoRx Inc. narrowed its loss in the third quarter on aggressive cost cutting that resulted in a 36 percent reduction in its workforce.
The Cambridge-based company said the move to conserve cash should enable it to continue as a going concern — without any additional equity financing — into 2012.
Nonetheless, CombinatoRx’s (Nasdaq: CRXX) efforts to reduce its cash burn have dramatically affected its research and development budget — a key line item for a company whose future depends on the discovery and commercialization of new drug therapies and related technologies.
CombinatoRx’s cash and cash equivalents totaled $22.2 million as of Sept. 30, down from the company’s June 30 total of $30.6 million. CombinatoRx had $43.7 million in cash on its books as of Dec. 31.
R&D costs totaled $4.9 million in the three-month span, down 65 percent from the $13.8 million spent a year earlier. Year-to-date through Sept. 30, R&D costs totaled $18.2 million, compared with $45.5 million in 2008’s corresponding period.
With $2.7 million in revenue in the third quarter, CombinatoRx booked a net loss of $8.3 million. In 2008, third quarter revenue was $3 million and the company’s net loss was $14.4 million.
CombinatoRx primarily works with partners to discover new therapies using combinations of preexisting drugs and life sciences technologies.
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